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What Makes Bouygues SA (EPA:EN) A Great Dividend Stock?

Over the past 10 years Bouygues SA (EPA:EN) has been paying dividends to shareholders. The company is currently worth €12b, and now yields roughly 5.1%. Does Bouygues tick all the boxes of a great dividend stock? Below, I’ll take you through my analysis.

Does Bouygues pass our checks?

The current trailing twelve-month payout ratio for the stock is 53%, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect EN’s payout to remain around the same level at 53% of its earnings. Assuming a constant share price, this equates to a dividend yield of around 5.1%. In addition to this, EPS is forecasted to fall to €2.91 in the upcoming year.

Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. EN has increased its DPS from €1.5 to €1.7 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock.

Compared to its peers, Bouygues generates a yield of 5.1%, which is high for Construction stocks.

Next Steps:

Taking into account the dividend metrics, Bouygues ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. I’ve put together three important aspects you should further examine:

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.